Section 9(1) of the Income Tax Act
Income-tax Act, 2025: s.9
Section 9(1) falls under section 9 of the Income-tax Act, 1961, which corresponds to section 9 (Income deemed to accrue or arise in India) of the Income-tax Act, 2025.
Read section 9 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 9(1) is Vijay Television (P.) Ltd. v. DRP (369 ITR 113), cited in 140 of the 168 judgments on BharatTax that turn on this section.
Leading authorities on Section 9(1)
Passing a final assessment order under Section 143(3) directly, without first issuing a draft assessment order under Section 144C(1) for an eligible assessee, constitutes a fundamental jurisdictional defect. This defect cannot be cured by a subsequent corrigendum, especially if issued beyond the prescribed period of limitation.
Failure to issue a draft assessment order under Section 144C(1) makes the final assessment order illegal and beyond jurisdiction. Non-compliance with Dispute Resolution Panel (DRP) directions renders the final assessment order bad in law.
A decision by the Gujarat High Court in CIT v. C-Sam (India) Pvt Ltd. does not support the case of a party relying on it, particularly when other High Courts have made contrary findings.
The 'make available' clause in a tax treaty is not considered res integra and has been interpreted to mean that technical services are only taxable as fees for technical services (FTS) if the technology itself is transmitted, not merely managerial or consultancy services that do not transmit technology.
